The Copper Boom Has Arrived – And It’s Poised to Outshine Gold

While Gold continues to dominate headlines with its historic rally, a far more explosive opportunity is emerging beneath the surface. According to analysts at The Gold & Silver Club, Copper is rapidly becoming the most strategically vital – and potentially most undervalued – asset in global markets today.

Lars Hansen, Head of Research at The Gold & Silver Club, summarises the shift with characteristic precision: “Investors are fixated on Gold’s breakout, but Copper is where the real asymmetry lies. The world is confronting a supply squeeze just as structural demand enters its most aggressive acceleration in modern history. This is the trade of the month – and potentially the trade of the decade.”

AI Is Creating a Perfect Storm in Copper

For years, Copper has been treated as a barometer of global growth. That framework is now obsolete. The metal has become the essential lifeblood of the AI-powered economy, underpinning everything from high-density wiring to liquid-cooled data centres and next-generation power transmission.

As analysts at The Gold & Silver Club put it: “If artificial intelligence is the brain of the digital century, Copper is its circulatory system. And right now, the arteries are clogged”.

Demand for Copper used in AI infrastructure is accelerating at a pace that dwarfs previous industrial revolutions. Data centres require up to 10 times the electrical load of traditional facilities.

AI-grade cooling systems depend on highly specialised Copper components. Grid expansions – already lagging by up to a decade – require unprecedented tonnage simply to keep pace with the computing build-out. As Hansen notes, “The bottleneck in the AI century won’t be semiconductors. It will be the Copper that enables those semiconductors to run continuously.”

The Copper-To-Gold Ratio Is Flashing Its Strongest Buy Signal in 50 Years

The Copper-to-Gold ratio has collapsed to levels not seen in half a century, trading more than two standard deviations below its long-term mean. Such extremes are rare – and historically, they have preceded powerful multi-year reversals in Copper’s favour.

Gold has climbed over 55% year-to-date, driven by geopolitics, fiscal concerns and relentless central bank buying. Copper, meanwhile, has lagged its traditional macro correlations, detaching from global growth indicators and emerging market performance.

“This divergence is not sustainable,” says Hansen. “Copper is trading at an extreme discount in Gold terms. Value-oriented traders are staring at one of the cleanest asymmetrical setups in today’s market.”

A Supply Crisis Colliding With a Demand Explosion

Global Copper consumption sits at roughly 25 million tonnes annually today. Achieving net-zero targets by 2050 will require closer to 50 million tonnes per year – yet supply is moving in the opposite direction. Mine grades are deteriorating, permitting timelines are lengthening, resource nationalism is rising and major producers have issued repeated output downgrades. The Gold & Silver Club’s analysts forecast cumulative structural deficits beginning this year and extending deep into the 2030s.

The most dramatic demand surge will come from electric vehicles, where Copper intensity is set to rise twelve-fold. But AI is now emerging as the biggest unexpected catalyst. The Gold & Silver Club’s research projects AI-driven electricity consumption reaching 2,200 terawatt hours by 2035. Grid infrastructure alone could require more than one million tonnes of additional Copper annually by 2030.

“Every model we run points to the same conclusion,” Hansen explains. “The Copper market is entering a structural supply deficit that the world is not prepared for. Prices will need to rise – significantly – to ration demand.”

The Window Is Closing Fast

For now, retail traders remain distracted by Gold’s meteoric ascent. But institutional capital has already begun rotating into Copper futures, mining stocks and physical supply chains. Once the broader market recognises the magnitude of the deficit, the opportunity will compress swiftly. At that point, positioning will be crowded, liquidity premiums will spike and the outsized asymmetry currently available will evaporate.

If you missed the early stages of Gold’s breakout, Copper may be your second chance – one that could prove even more lucrative as the AI and electrification megatrends collide with an unprecedented supply crunch.

The Time to Position Is Now

Every Commodities Supercycle rewards the early adopters – and leaves the hesitant behind. Copper is entering its defining moment. The fundamentals are tightening. The ratio signals are flashing. The smart money is already moving.

If you want to profit from what could be the most explosive metal of this cycle – and secure your position before the next leg higher – then now is the moment to act. Do not wait for consensus. By the time the world catches on, the real opportunity will be gone.